SINGAPORE: Japanese rubber futures jumped on Monday to their highest in five-and-a-half months, underpinned by a soft yen, while fresh support measures in China helped lift trader sentiment.
The Osaka Exchange’s rubber contract for February delivery rallied for a tenth session, finishing 2.2 yen, or 1%, higher at 214.6 yen ($1.47) per kg.
The OSE’s August contract expired at 211.5 yen per kg. The rubber contract on the Shanghai futures exchange for January delivery fell 50 yuan to finish at 13,205 yuan ($1,811.76) per metric ton.
Japan’s benchmark Nikkei average closed 1.73% higher. Beijing said on Sunday it would halve the stamp duty on stock trading in the latest attempt to boost its struggling markets. It also announced steps to support the housing market. The yen was up 0.05% against the dollar at 146.34, but not far off the more than nine-month low of 146.64 hit on Friday as traders continue to watch out for any signs of intervention in the currency market from Japanese authorities.
A weaker yen makes assets denominated by the currency more affordable for overseas buyers. In top rubber exporter Thailand, the Meteorological Department warned of heavy rains that could lead to flash floods in several regions, including the primary rubber-producing South, between Aug. 29 and Sept. 15.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9% from a week earlier.
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